Mike Ginsberg

Mike Ginsberg

Last week at DCS 2014, I presented on the topic “Where is the ARM Industry Heading” during the Fast Tracks segment.  Living up to its name, Fast Tracks is intended to provide the audience with quick bursts of information on specific topics.  Here are a few of the pressing topics I covered:

Market segments will expand and contract, but the U.S. will remain a vibrant credit economy overall. Pre-1995, the big challenge confronting ARM companies was the “Hilary Factor”, which threatened the viability of healthcare, their biggest market. Healthcare agencies were concerned that policy changes would result in the elimination of their services. For nearly 15 years, starting in the mid-1990’s, the growth market for ARM companies had been credit cards. Today, the industry has gone full circle. Government and, once again, healthcare collections are the big growth markets. In the end, market segments continue to expand and contract as the always have.

Effectively managing accounts receivable will continue to be an essential component of a credit grantor’s success.Accounts Receivable is the bloodline of any business.  Choices for managing accounts receivable used to be limited to one option: Should a credit grantor use a third party collection agency or not?  Today, the options are significantly greater and decisions are being made in a heavily regulated environment.  Effectively managing accounts receivable will continue to be an essential component of a credit grantor’s success.

A strong wave of consolidation will occur among ARM companies as increased costs set in and companies find it increasingly more challenging to operate profitably as a stand-alone business.

The intense regulatory environment is creating the first true barrier-to-entry. This is good news for everyone involved in ARM. For a long time, anyone with a phone and a mouth could start a collection company, but that is no longer the case because more and more clients will not place business with start-ups. I predict the number of new collection agencies, collection law firms and debt buyers will fall drastically, which will only accelerate this wave of consolidation.

On September 24 at 2:00 p.m. EST, Rozanne Anderson and I will be hosting the third installment of our webinar series, “From Our Desk to Yours – Leadership Series for ARM Executives.”  (click here to register).  We will cover the hot topics impacting ARM companies, creditors and vendors alike. There is no cost to participate so please attend and spread the word to the rest of your team to join us. Thank you.


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